Mortgage interest deductable?

[JON]

Mortgage(s) all taken out after 10/13/87. Taxpayer takes out a second mortgage (or refinances the first) on his main home using the proceeds to acquire a second home ($300,000). Now look at Publication 936 (2008) Is my home mortgage interest fully deductible(chart), on page 3?

I quickly get to the fourth box on the left side which states the following:

"Were all your home mortgages taken out after 10/13/87 used to buy, build, or
improve the main home secured by that main home mortgage or used to buy, build,
or improve the second home secured by the second home mortgage, or both."

Does th or both mean you can use the proceeds from the main to buy the second without having the second pledged????

[Kram BergGold]

My understanding

The way this was taught to me is the interest on the principal used for the second home since not backed by the second home is home equity debt not home acquisition debt. Therefore only the interest on the first 100k borrowed on top of the amount left on the original debt is deductible. But that interest is taxable for AMT.

[JG EA]

... or both."

Does th or both mean you can use the proceeds from the main to buy the second without having the second pledged????

Agree also with Kram-
See page 8 in that pub - secured "by that home" and the subheading - Mortgage that Qualifies Later and so on throughout the pub. It makes it more clear that the home that qualifies must have a mortgage secured by that home.